State Comptroller Thomas P. DiNapoli announced a $4 million settlement with M/A-COM, Inc. after the State Comptroller’s office found the company billed the state for services it never provided and equipment the state had already paid for. In addition, the state has eliminated some services that were part of the original contracts with M/A-COM for a total of $23.6 million.

“Anyone who does business with the state has an obligation to provide the goods and services they promised,” DiNapoli said. “When that doesn’t happen, my office holds those businesses accountable so taxpayers aren’t shortchanged. M/A-COM did not fully live up to its contract, so we took action.

M/A-COM has a $2.1 billion dollar contract – the biggest technology contract in state history – with the state to build the Statewide Wireless Network. It has fallen over a year behind schedule and found reliability problems in Chautauqua and Erie Counties and in Manhattan in during tests in December.

“M/A-COM is now building the most expensive technology project ever in New York, the Statewide Wireless Network. My office is auditing every phase of this project and watching expenses closely to ensure that taxpayer dollars are protected. Lives depend on the success of this project and the state cannot afford to make mistakes.”

This settlement stems from a review of contracts the state Division of State Police, the state Department of Transportation and the state Department of Correctional Services had with M/A-COM to acquire and maintain radio communications equipment. When auditors examined the payments under these contracts, they found M/A-COM billed agencies for preventive maintenance services it never provided and charged agencies higher prices than allowed under the contracts, according to DiNapoli’s audit.

The state agencies acted upon the audit’s recommendations and tightened controls. In addition, the contracts with M/A-COM are being amended to drop maintenance services and other services will also not be used, saving the state $23.6 million.

A few minutes after DiNapoli’s office issued the press release about the $4 million settlement, M/A-COM sent out a press release of its own, touting success in Chautauqua County’s testing of the the system. From the press release:

Chautauqua County Sheriff Gerace Praises Statewide Wireless Network to Sheriffs Across New York State

As official State testing for the Statewide Wireless Network (SWN) winds down in the Primary Region Buildout (PRB), consisting of Chautauqua and Erie Counties, Chautauqua County Sheriff Joseph A. Gerace sent the attached letter via email to every sheriff in New York State.

Sheriff Gerace told his fellow sheriffs, “I am very impressed with the system!”

M/A-COM recently completed the primary phase of the contract in Erie County and the network is currently undergoing testing by the state. The Comptroller’s audit is part of scheduled, ongoing audits of the contract.

The state can opt-out of the $2.1 billion contract after this round of tests and audits is completed.

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